Xichan Plastic Surgery Hospital Secures RMB 200 Million Investment, Plans IPO Filing in 2018

VCBeat (WeChat ID: vcbeat) recently learned that Chengdu Xichan Plastic Surgery Hospital (hereinafter referred to as “Xichan”) has publicly announced securing RMB 200 million in strategic investment. The investor is Shenzhen GTJA Investment Group, with Dianshi Capital serving as the exclusive financial advisor.

This funding will provide Sichuan Xichan with strong financial support, helping it accelerate the pace of new store expansions, further strengthen its influence in the Southwest region, and rapidly explore business opportunities in other regions. Currently, Sichuan Xichan has planned to initiate its IPO filing in 2018 and achieve an IPO in 2019.

Xichan was established in March 2005. It is a comprehensive aesthetic hospital under the administration of the Sichuan Provincial Health Department and jointly founded by entities including the Chinese Medical Association’s Branch of Medical Aesthetics and Cosmetology. The hospital has been certified as one of China’s first batch of 5A-grade medical plastic surgery institutions and has received awards such as “Advanced Private Medical Institution.”

Xichan has established a “1+N” premium chain model, with its flagship Chengdu General Hospital leading the way and six urban branch hospitals in cities such as Yibin, Leshan, and Zigong developing in sync under standardized management. It has grown into a chain medical institution for plastic and aesthetic surgery that integrates medical care and teaching.

Xichan provides a comprehensive range of medical aesthetic services, including plastic and cosmetic surgery, laser skin rejuvenation, skin care maintenance, injectable aesthetics, cosmetic dentistry, body contouring and tightening, and anti-aging management. Leveraging a team of attending physicians specializing in plastic and cosmetic surgery as well as dermatological aesthetics, Xichan employs multiple internationally recognized medical aesthetic techniques and numerous advanced devices to serve a broad clientele seeking aesthetic enhancement.

Data shows that in 2016, China's medical aesthetics market was estimated to reach RMB 796.3 billion, with an annual growth rate of nearly 20%. In the field of non-surgical cosmetic procedures alone, the market has been growing at a rate of over 15% per year.

Tang Heng, a partner at GTJA Capital, shared his insights on the medical aesthetics industry in an interview with the media. Mr. Tang believes that in recent years, Chinese residents’ consumption capacity has significantly increased, and individuals are placing greater emphasis on their appearance. Influenced by popular culture and the “celebrity effect,” social acceptance of medical aesthetics has continued to rise. With the development and application of new medical technologies, the prices of medical aesthetic services are expected to become increasingly affordable, thereby attracting a growing number of consumers willing to try these treatments.

Furthermore, Sun Yanjun, a partner at Dianshi Capital, spoke highly of Xichan, noting its strong brand, technological expertise, and management capabilities, and stating that the investment would facilitate further expansion for Xichan.

Shenzhen GTJA Investment Group Co., Ltd. was established in 2001 with a registered capital of RMB 236 million, making it one of the earliest professional venture capital firms in China. Guided by the vision of building “a premier brand managed by a local Chinese investment institution,” GTJA boasts strong domestic investment capabilities and vitality. It has now evolved into a cross-regional investment group encompassing venture capital, private equity (PE) investment, strategic industry investment, and asset management.

It is worth noting that GTJA Capital is the first institution in China to focus on “thematic industry investment” in the healthcare sector. The company positions itself as a full-stage investor dedicated to the healthcare industry, with its investments in the healthcare sector exceeding RMB 10 billion in 2017.

Dianshi Capital is a data-research-driven boutique investment bank that primarily provides financing and M&A services to Series B and C companies. Dianshi Capital focuses on new finance and new services, with its new finance coverage encompassing consumer finance, supply chain finance, big data risk control, internet insurance, and blockchain applications. Dianshi Capital is committed to providing professional financing and M&A advisory services to high-growth innovative enterprises, helping them become leaders in their respective niches.

Reference: http://www.sohu.com/a/163570073_439726